This was an investment opportunity to co-invest alongside high profile lead investors in an Australian trust that will subscribe for USD denominated shares issued by Kacific Broadband Satellites Pte. Ltd. a company incorporated in Singapore (Kacific).
This opportunity is available to wholesale investors in Australia registered with VentureCrowd.
Investment opportunity - To invest in the early stage of an infrastructure company whose business is to develop and operate a broadband offering in the Asia Pacific region
High profile lead investors - A group of Sydney based investors, including a former CEO of Macquarie Group (ASX:MQG), and the co-founder of an ASX listed technology company and a former foundation director of Intelsat Ltd
Purpose - Final top up equity for a c. US$150M project, already fully funded. Funds generally for core expenditure to purchase and operate communication satellites to cover Asia-Pacific
Unique risk profile - Upside of a start-up, with a high cashflow visibility of an infrastructure investment fully insured against technical risks
Follow-on Series A - In the form of Ordinary Shares
Strong board and management team of veterans in the telecom and satellite industries
Take-or-pay sales contracts already secured, representing approximately 70% of future capacity
Value proposition - New satellite to bring game changing broadband offering: affordable,high speed and easy access, sold wholesale to local telecom operators in 22 countries
In the final contracting phase of satellite and launch vehicle providers, from top tier industry partners
Company already offering broadband services on existing satellites in two countries, expanding into three more countries in January 2017
Impact investing and social benefits - Enable broadband internet access to underserved communities of the Pacific Islands and South East Asia
This was an opportunity for VentureCrowd registered wholesale investors to invest in the Series A2 capital of a start-up infrastructure company, established to develop a wholesale broadband internet offering for an underserved market of over 140 million people in the Pacific Islands, New Zealand, Eastern Indonesia, the Philippines and Papua New Guinea.
Equity investors include a group of high profile Sydney based investors, the co-founder of an ASX listed technology company and a former foundation director of Intelsat Ltd.
As at Q1 2017 Kacific was on track to launch a low cost, high-speed broadband satellite, using the latest generation Ka-band technology that has been successfully deployed in North America, Europe, the Middle East and Australia. Kacific's new generation satellite will be the first of its kind in the Asia Pacific region, delivering low cost, easily accessed and high speed Internet direct to the premise across all communities in its target markets. Kacific's satellite has been engineered to deliver an end-user cost that is significantly lower than existing satellite solutions and competitive with (and often cheaper than) comparable fixed and terrestrial wireless broadband solutions.
Kacific has been mainly contracted by telecom customers to connect education and health services in rural and remote locations.